Canada-U.S. Trade Concerns Over Mexico

Alberta Premier Danielle Smith has expressed strong support for Ontario Premier Doug Ford's proposal to consider excluding Mexico from the North American trade agreement, citing concerns over Mexico's engagement with Chinese investments that undermine the manufacturing sectors in both Canada and the U.S. Smith stated that a 'Canada-first' approach is necessary, particularly in light of potential 10% tariffs promised by U.S. President-elect Donald Trump. Ford has criticized Mexico for becoming a 'backdoor' for Chinese products, suggesting that if Mexico does not align its tariffs on Chinese imports with those of Canada and the U.S., it should not participate in the trade agreement. Both premiers are in discussions about possibly pursuing a bilateral trade deal with the U.S. instead of the current trilateral arrangement, which is set for review in 2026. Smith believes that maintaining a strong relationship with the U.S. is crucial and that Mexico's actions could be a significant 'trade irritant'.